R. Garland Steadman and Susan K. Steadman v. State Farm Fire and Casualty Company

CourtDistrict Court, S.D. Mississippi
DecidedMay 14, 2026
Docket2:25-cv-00073
StatusUnknown

This text of R. Garland Steadman and Susan K. Steadman v. State Farm Fire and Casualty Company (R. Garland Steadman and Susan K. Steadman v. State Farm Fire and Casualty Company) is published on Counsel Stack Legal Research, covering District Court, S.D. Mississippi primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
R. Garland Steadman and Susan K. Steadman v. State Farm Fire and Casualty Company, (S.D. Miss. 2026).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF MISSISSIPPI EASTERN DIVISION

R. GARLAND STEADMAN and § PLAINTIFFS SUSAN K. STEADMAN § § § v. § Civil No. 2:25cv73-HSO-RPM § § STATE FARM FIRE AND § CASUALTY COMPANY § DEFENDANT

MEMORANDUM OPINION AND ORDER GRANTING DEFENDANT STATE FARM FIRE AND CASUALTY COMPANY’S MOTION [33] FOR PARTIAL SUMMARY JUDGMENT AND DISMISSING PLAINTIFFS’ CLAIMS FOR EXTRACONTRACTUAL AND PUNITIVE DAMAGES

In this homeowners’ insurance coverage dispute brought by Plaintiffs R. Garland Steadman and Susan K. Steadman, their insurer Defendant State Farm Fire and Casualty Company seeks partial summary judgment as to their claims for extracontractual and punitive damages. See Mot. [33]; Mem. [34]. Defendant’s Motion [33] should be granted, and Plaintiffs’ claims for extracontractual and punitive damages should be dismissed with prejudice. I. BACKGROUND A. Factual Background Plaintiffs R. Garland Steadman and Susan K. Steadman (“Plaintiffs” or the “Steadmans”) own a residence in Hattiesburg, Mississippi, which was insured under a homeowner’s insurance policy (the “Policy”) issued by Defendant State Farm Fire and Casualty Company (“Defendant” or “State Farm”). See Ex. [33-1]. The Steadmans assert that their home suffered covered damage on two separate occasions, first during a hailstorm on or about April 15, 2022, and then in a second storm causing “wind-related damage, including water intrusion and interior

damage” on or about May 5, 2023. Compl. [1-2] at 2. Plaintiffs submitted two separate claims to State Farm under their Policy. Id. They allege that “State Farm should have fully replaced the roof following the 2022 storm,” but did not, which “allowed vulnerabilities to persist in the roofing system.” Id. “As a result, when the property was subjected to high winds and rainfall during the 2023 storm, those vulnerabilities likely contributed to water intrusion and additional interior damage,” which “could have potentially been avoided had State Farm properly

handled the 2022 claim.” Id. State Farm’s claim notes from May 5, 2022, state that it “found 2 photos of ice balls, possibly hail,” and that the April 2022 hailstorm caused some damaged shingles. See Ex. [33-2] at 10. But this was determined to be “Minimal Hail damage to 1 of 4 directional slopes” and there was “Minimal wind damage visible on rear slope” of the property’s roof. Id. at 8. State Farm “[e]stimated all needed

repairs,” id., and determined that there was no damage to the dwelling exterior or interior, see id., such that the loss fell below the Policy’s deductible, see id. at 7. So, on May 24, 2022, State Farm sent Mr. Steadman a letter that read in relevant part: Thank you for the opportunity to review your Homeowners claim. We have completed our evaluation of your claim and have determined your loss does not exceed your $1,549.00 deductible. Therefore, we are unable to make a payment on this claim. Please see the enclosed estimate of damages for your personal records. While State Farm® has inspected your residence, an inspection of the interior of your home did not occur. You advised that there was no interior damage in your home and, thus, no reason for State Farm to inspect the interior. If you become aware of interior damage you believe may relate to this loss, or would want State Farm to inspect the interior of your home, please contact me as soon as possible to schedule an inspection.

Ex. [33-3] at 1. Following the second storm, on May 12, 2023, Plaintiffs reported wind damage, including possible hail damage to siding and wind and hail damage to the roof. See Ex. [33-5] at 7-8. State Farm inspected the exterior damage on May 18, 2023, but was informed by Plaintiffs that the interior damage had already been repaired. See id. at 7. Plaintiffs provided photographs of the interior damage taken before the repairs were made, see id., but later advised this interior damage was from the prior April 2022 claim, see id. at 6. On May 22, 2023, State Farm concluded that its “inspection did not reveal any accidental direct physical loss” to the residence, and it was “unable to issue payment to [Plaintiffs].” Ex. [33-6] at 1. Plaintiffs then registered a complaint with the Mississippi Insurance Department. See Ex. [33-8] at 1. State Farm sent several responses to the complaint, disputing Plaintiffs’ claims. See Ex. [33-9] at 1-2; Ex. [33-10] at 1; Ex. [33-11] at 1. According to State Farm, “a detailed and thorough investigation transpired and there is no reason to order an engineer’s report,” and “[o]ur claim decision is supported by our investigation and remains unchanged.” Ex. [33-11] at 1. B. Procedural History On April 14, 2025, Plaintiffs filed suit against State Farm in the Circuit Court of Forrest County, Mississippi, see Compl. [1-2], which was removed to this

Court, see Notice [1]. The Complaint [1-2] advances claims for breach of contract (Count I) and breach of the duty of good faith and fair dealing (Count II), and demands all contractual damages, including for repair and remediation expenses; “[a]dditional living expenses and/or loss of use expenses”; loss of personal property; the inability to make appropriate repairs due to inadequate payments under the Policy; diminution in Property value; attorneys’ fees and costs; extracontractual damages, including emotional distress; punitive damages; and pre- and post-

judgment interest. See Compl. [1-2] at 3-4. State Farm now seeks partial summary judgment on Plaintiffs’ extracontractual and punitive damages claims. See Mot. [33] at 1. It takes the position that the evidence shows that it possessed “reasonable, arguable bases for its decisions on the Steadmans[’] insurance claims,” Mem. [34] at 12, and that it “acted promptly throughout the claim handling process, considered all information

submitted by the Steadmans, and conducted its own investigations into the April 2022 claim and May 2023 claim,” id. State Farm believes that, because its decision was reached in good faith and the Steadmans cannot produce evidence showing malice in the claims handling process, neither punitive nor extracontractual damages are appropriate. See id. at 12-18. Plaintiffs object to some of the evidence relied upon by State Farm, see Mem. [36] at 16-17, and respond that “[t]he record is replete with evidence of storm- related damage, expert opinions of causation by covered weather events, and

material disputes regarding the adequacy and fairness of State Farm’s investigation,” id. at 1. Specifically, Plaintiffs maintain that State Farm conducted an inspection in their absence “despite repeated requests to reschedule, failed to perform a meaningful interior inspection after reports of water intrusion, issued conclusory denial letters that did not address contrary evidence, and communicated claim determinations to a visually impaired insured without accommodation.” Id. at 2. Plaintiffs argue that, even though they promptly reported their losses to and

fully cooperated with State Farm, it did not issue any payment for either loss, and it failed to conduct a reasonable and thorough investigation, issued denials that were contrary to the evidence, and made no effort to communicate its conclusions to Mr. Steadman, who is blind. See id. at 3-13. According to Plaintiffs, there are genuine issues of material fact as to whether State Farm lacked a legitimate or arguable basis to deny their claim, which precludes summary judgment. See id. at 18-25.

In its Reply [37], State Farm counters that “the battle of the experts as to the existence and extent of storm-related damage supports the existence of reasonable basis for State Farm’s claim handling decisions.” Reply [37] at 7. As for Mr.

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R. Garland Steadman and Susan K. Steadman v. State Farm Fire and Casualty Company, Counsel Stack Legal Research, https://law.counselstack.com/opinion/r-garland-steadman-and-susan-k-steadman-v-state-farm-fire-and-casualty-mssd-2026.